Qualified Automatic Contribution Arrangement (QACA) refers to a rule established under the Pension Protection Act of 2006 to increase worker participation in self-funded retirement plans. Such plans include 401(k)s, 403(b)s, and deferred compensation 457s. Companies that use QACAs automatically enroll workers in the plans at a deferral rate at or above 3%, unless employees take action to opt out.
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